Landowner to allow Yarragon coal search

A mining company has gained approval from a West Gippsland property owner to explore for coal at his property.

Green Power Energy Australia has confirmed it plans to drill a hole and explore for coal on the man's property, located in the township of Yarragon.

The company's chief executive, John Watts, says the company needs approval from the Department of Environment and Primary Industries before exploration can begin.

He says the company is already active in the area and residents do not yet have anything to worry about.

"It is so far into the future that I would not be concerned at this point in time," he said.

"This is an exploration licence we hold before we can go any further ... if we wish to take it any further, we would have to, firstly, get a minerals retention licence."

Environment groups says residents should be worried about minerals exploration in their town.

Ursula Alquier from the anti-mining group Lock the Gate says Green Power Energy Australia has approached several residents in Yarragon for access to their properties.

She says the company should not be allowed to carry out exploration so close to the township.

"It's in the industrial area but that is also situated quite close to the residential areas of Yarragon, and keep in mind that the current Victorian law does allows a gas company to put a gas well within a 100 metres of someone's home," she said.